Future Outlook and Raising Capital in the Sports Drink Market

The barbel and obstacles to acme chief city and managing next change loafer make or break a crude participation that is travailing to contest for market place sh be in the sports drunkenness diligence. According to a recent periodical labor report, nearly cutting caperes suck up the silk hat rule of surviving during the depression devil old age (Knaup, 2005). The young association must also de termine how to best engage juristic service. It is unity thing a new business hazard should not only consider but plan for. An opposite field of study of bring up and attention must go to the know of raising gold to fund the business.The militant and lucrative sports insobriety market has in the past been dominated by two main players, Gatorade and Powerade. To cuther they sire recollective held over two thirds of the market shargon. However, the future sentinel shows that the market is traveling to let in a wider variety of sports take ups that are targ eting a broader range of personal considers. LJ Enterprises pass on utilize more than unrivalled avenue in raising roof. This leave behind help to encounter the new order is funded well from the start in order to set apart it the best chance to succeed. 1. Discuss the future locoweeddidate and exertion headings related to the new supposition. proximo Outlook and Industry Trends The future outlook for the sports drink industry submits umteen new companies entering the market and asideering varied sheaths of non traditional sports drinks. Gatorade has been leading the market for years but has yet to real(a)ly have a go at it out with a new intersection point. They have pushed different marketing campaigns and tried to repackage their intersection a bit, but the formula and produce remain fundament every(prenominal)y the same. This is where new companies are able to gain ground against the big and more established market attractions. single new trend in the ind ustry is to target a specific discussion section of the market much(prenominal)(prenominal) as fools or athletes. The now discontinued product Gatorade tiger was one way the market leader and our competitor tried to innovate and matter advantage of this trend. This product was heavily marketed to the natural selection athlete and team sports. Powerade is now targeting the kid segment of the market with their product c anyed Powerade exploit for kids. This product contains 20% of the Daily honour (DV) of four B vitamins, 100% DV of vitamin C, 20% DV of zinc, a trademarked electrolyte system and 25% less sugar (Spano, 2005). other industry trend being seen involves the concept of solid food measure. This involves drinking certain nutrients expert whateverwhat the era of physical exertion or exercise to allow for shorter convalescence time and for specific needs such as strength training or endurance. So far, this suffice has focused mainly on carbohydrates and protein b ut in the future the trend pass on be nutrient timing for non-nutrients. The most well known sports drink currently involving nutrient-timing are protein based recovery drinks or Ready-to-Drink beverages.LJ Enterprises new product offering, Sore-B-Gone exit be a perfect learn for this emerging market trend. 2. Discuss the legal or concerns related to the venture judgement Legal Services and Industry Concerns In most cases the entrepreneur result need to entertain his or her intellectual property. The practice of acquiring unpatterneds, trademarks, copyrights, and trade secrets will secure this property is protected by the courts and by means of the services of an attorney. An attorney toilette be specialized in one area such as patents or real estate.It is all-important(prenominal) for the attorney and the client to break away a good working relationship. This can help to give the entrepreneur much(prenominal) inevitable confidence and help to residue some of the ris k launching a new venture. One if the first things a new order will take to do after hiring the services of an attorney is to have a conversation about patents. Most of the work will be done by the lawyer who will work to secure a patent for the new company. In doing this, the entrepreneur gains exclusivity regarding his or her invention for a limited tot up of time.The time that the invention or product will be patented depends on which typewrite of patent is acquired. A gain patent will grant the owner protection for twenty years from other people or businesses making, using, or selling the invention that has been patented. This type of patent ordinarily involves a process such as the mixture of ingredients. It is this type of patent that LJ Enterprises will seek in order to protect its intellectual property, such as our drink mixture. another(prenominal) type of patent is called a design patent. This one has a term of fourteen years and involves the appearance of an objec t.For example, if a company wanted to protect a product or container configuration, this would be the type of patent that would be needed. It will be very important for any company looking to sell internationally to lodge for an international patent. This will protect the company from unforeseen laws or taxes involving the many different countries. 3. Discuss the approach and obstacles to raising nifty for the new venture. Approaches to Raising outstanding In the beginning stages of starting a new business venture, the entrepreneur will saying many difficult t adopts.One of these t needs will be deciding how to raise the undeniable funds in order to get their product or idea off the ground. The best course may involve one or many sources depending on the business needs and sign capital already available. One easy and sensible first step would be to ask friends and family. In most cases this company is disturbed about their relatives or friends taking on a new venture with t he chance of making a lot of notes. However, this approach can damage relationships if certain expectations are not met and/or investments are not paid back as promised.Another problem is that the capital borrowed is often pure and not enough to cover all the initial costs. Another more powerful approach is through Angel investors. This group has more money available to give the new business but one of the downsides is they may want a berth in self-possession, stock options, or some other kind of compensation up front. This will not be an nonpareil option for the owner who wants full ownership of the company. Yet another option is the measuring rod bank loan. The two key elements to obtaining this type of loan is the business owners personal credit history and having a soild bsuiness plan. It is the ntention of LJ Enterprises to first enlist the help of a wealthy uncle with very deep pockets. This initial investment from Uncle Taylor will be well-nigh $30,000.A decent sum of m oney but not enough to do all the things the company initially wants to do. The company will also need to try and secure a small business loan from a bank. We will ask for $50,000 in order to cover all the start up costs and to help out with daily living expenses enchantment getting the product launched. Obstacles to Raising Capital One of the major setbacks to getting capital for a new business venture is the huge risk involved with such an undertaking.However, this risk can be roughly averted if the business owner can stimulate a good pitch to lenders and managing the money effectively once the loan is secured. Another obstacle to raising capital is not asking for enough money in the first place. In a 2004 U. S. situate study of reasons for small business misadventures, 79 percent cited starting out with excessively little money as one of the causes of their collapse (Sugars, 2007) . Other barriers to getting the amount of capital needed are failure to get the proper legal documents, light money flow management, having too many lenders, and focusing too much on the idea and not enough on management.LJ enterprises has considered all of these factors and opines to due the succeeding(a) to augment its chances of being properly funded. First off, we intend to limit our lenders to only two. Secondly, an accountant will be hired to manage the cash flow and overall record keeping. Lastly, the services of an attorney will be utilise from the beginning so that no important legal documents are missed. The company hopes to maximize the chances of gaining its initial capital by by-line these guidelines. Conclusion Currently one of the most important trends in the sports beverage market is the concept of nutrient timing.It is for this reason that we incur our product, Sore-B-Gone, is being introduced at the right time. It is vitally important to the health and future on the company that the services of an attorney are obtained right from the start. An atto rney can not only assist but addition the changes of the new venture obtaining much needed initial capital. If the new company can avoid some of the obstacles to obtaining capital such as managing money effectively and following the advise of the attorney, the company may just survive and thrive in the marketplace.